Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing CONSOL Energy Inc.'s (NYSE:CEIX) CEO Pay Packet
Key Insights
CONSOL Energy will host its Annual General Meeting on 30th of April
CEO Jimmy Brock's total compensation includes salary of US$1.00m
The total compensation is 114% higher than the average for the industry
CONSOL Energy's EPS grew by 100% over the past three years while total shareholder return over the past three years was 807%
Under the guidance of CEO Jimmy Brock, CONSOL Energy Inc. (NYSE:CEIX) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for CONSOL Energy
Comparing CONSOL Energy Inc.'s CEO Compensation With The Industry
According to our data, CONSOL Energy Inc. has a market capitalization of US$2.5b, and paid its CEO total annual compensation worth US$13m over the year to December 2023. That's a notable increase of 32% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.
On examining similar-sized companies in the American Oil and Gas industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.2m. Accordingly, our analysis reveals that CONSOL Energy Inc. pays Jimmy Brock north of the industry median. Moreover, Jimmy Brock also holds US$39m worth of CONSOL Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.0m | US$1.0m | 8% |
Other | US$12m | US$9.0m | 92% |
Total Compensation | US$13m | US$10.0m | 100% |
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. In CONSOL Energy's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at CONSOL Energy Inc.'s Growth Numbers
CONSOL Energy Inc.'s earnings per share (EPS) grew 100% per year over the last three years. Its revenue is up 10% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has CONSOL Energy Inc. Been A Good Investment?
We think that the total shareholder return of 807%, over three years, would leave most CONSOL Energy Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for CONSOL Energy that investors should look into moving forward.
Switching gears from CONSOL Energy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
